The Government announced earlier this month that there would be a delay in implementing Domestic Reverse Charge VAT for construction services. The new legislation, which was due to come into force on 1st October 2019, has now been postponed until 1st October 2020. Come this date, it will represent a major change in the way VAT is collected in the building and construction industry, and from 1st October 2020, means “the customer receiving the service will have to pay the VAT due directly to HMRC rather than the supplier. It will only apply to individuals or businesses registered for VAT in the UK.”

Obviously, this is a major change for any VAT registered business, contractor or sole trader in the UK providing construction and building services, so we really recommend reading the Government’s official information about Domestic Reverse Charge VAT for Construction Services here.